Can the VPN built into Windows 7 replace the Cisco VPN client?
Solution 1:
Windows has supported IPsec/L2TP VPNs for more than a decade, and PPTP hasn't been the default in years. Windows also supports SSL VPNs. All current Windows VPN protocols are fully standards-compliant. The problem likely has NOTHING to do with Windows and everything to do with the extra things that the Cisco VPN client is doing beyond just standard IKE negotiation, etc. In order to even possibly use the native client rather than the Cisco client, you'll need to know the authentication and encryption algorithms and mechanisms in use, the keying parameters, any RADIUS attributes that may be used, etc.
Solution 2:
I believe Windows uses PPTP for its VPN, where Cisco uses IPSec or SSL (if you're using the AnyConnect software). So no, Windows cannot natively connect to a Cisco VPN because they use different protocols for the tunnel.
Solution 3:
On Windows 7 after entering your ip address, username, and password it seems like it goes into a loop of trying something over and over (for a few minutes) and then eventually gives you an error dialog for "error 800".
I usually use the included vpn client in Apple Snow Leopard which connects in seconds and is easy to setup.